By Christopher C. Carr, Esq., Suburban Philadelphia Bankruptcy Lawyer
Struggling with too much debt: you’re not alone? The entire nation it seems has a credit card hangover especially after the new year when the bills for all those Christmas Presents start to roll in. For years, credit was easy and many people became overextended. But we now have to “pay the piper”. The advice of the debt experts is to be sure you don’t make your situation worse by making common mistakes.
So let’s talk frankly: Here are 5 strategies you should avoid:
- Paying only the minimum amount on your debt as this will result in the amount you owe actually GROWING and your problems will only become worse. Look at some of those credit card statements you get. It’s downright scary! 35 or 50 years to pay off your card at minimum payments! And maybe your cards are maxxed out and you really HAVE no more credit…what good is that? When that happens, it usually is a sign that it is time to get a fresh start!
- Relying on friends and relatives to bail you out with loans you probably never can repay as this can permanently damage relationships with the most important people in your life.
- Resorting to unscrupulous companies that demand cash upfront or high fees for help they promise, but don’t deliver. You need to do extensive due diligence before ever giving any of these companies a dime.
- Using new high-interest loan to pay off lower interest rate loans or doing a debt consolidation– while it may seem easier to just have one payment, this will actually increase the amount you have to pay back over time. Debt consolidation is just that: it just gets you one big bill instead of several smaller ones. What you really may need is Debt Settlement by an attorney, who will work hard to dramatically REDUCE your debt without bankruptcy.
- Declaring bankruptcy unless you have consulted with a bankruptcy lawyer and determined that this is the only appropriate choice for you – Bankruptcy can give you a fresh start even can SAVE YOUR HOME, CAR OR APARTMENT but it is NOT for everyone- it can have long term and severe consequences for your financial future. There usually are other alternatives such as debt settlement or a mortgage modification or a combination of tools and techniques which may work for you…
How to select a professional to guide you? The lawyer you select to advise you should be compassionate, versatile and experienced: able to understand each of these alternative tools and techniques, advise you as to which to choose and perform the service(s) you ultimately select with his/her assistance.
If you live in the Suburban Philadelphia area, including the counties of Berks, Bucks, Chester, Delaware, Lancaster, or Montgomery, and are seeking a competent and compassionate bankruptcy lawyer to help you explore your options and find the optimum solution, please call Attorney Christopher C. Carr, MBA (Finance) at 610-380-7969 (Offices in Paoli and Coatesville) for a FREE DEBT RELIEF EVALUATION. Or visit my web site at westchesterbankruptcyattorney.org and fill out the contact sheet.
I also provide Debt Settlement; IRS Tax Settlement & Mortgage Mod Services NATIONALLY.